Czech investment group PPF's 2023 profit soars as Russian impact wanes (updated)

Moneta Money Bank, A.s

14/05/2024 15:50

(Adds detail on results, plans with ProSieben, InPost, other
assets)
    By Jan Lopatka
       PRAGUE, May 14 (Reuters) - Czech investment firm PPF
Group said on Tuesday its 2023 net profit surged to its highest
level since 2008 helped by its telecoms, banking and media
businesses and the sale of consumer credit units.
        Net profit jumped to to 1.45 billion euros ($1.56
billion),  from 164 million euros in 2022, when PPF wrote off
around 1.2 billion euros after it left Russia following Moscow's
invasion of Ukraine, Chief Executive Jiri Smejc told reporters.
    PPF also sold its consumer lender Home Credit's businesses
in the Philippines and Indonesia last year as part of a shift
westward for the group, which spans 25 countries and holds
assets in biotechnology, real estate and engineering as well.
    The investment group is owned by the richest Czech, Renata
Kellnerova, who took over with her family after her husband Petr
Kellner died in a helicopter crash three years ago.
        PPF has bolstered its core business segments in Europe
while exiting Asian markets in recent years.
        PPF's telecoms business, including O2 Czech Republic,
Czech telecom infrastructure provider Cetin, or Yettel in
central and southeastern Europe, contributed 542 million euros
to profit last year, PPF said.
        Its financial businesses, including Czech banks Air Bank
and PPF Banka and Home Credit, brought in 580 million euros. 
    One-off asset sales contributed nearly 350 million euros to
the bottom line, Smejc told reporters.
        PPF's total assets rose to 43.48 billion euros in 2023,
from 39.88 billion in 2022, as the company also increased or
took new stakes in target companies.
        It is the second-biggest shareholder in German media
group ProSiebenSat.1  PSMGn.DE , and Smejc said PPF may consider
increasing its 15% holding, depending on the share price and
management progress in refocusing the company more on content
and in selling non-core assets.
    Smejc, who was a longtime investment partner of the late
Petr Kellner, also said PPF was happy as the largest shareholder
in Polish automated parcel machines company InPost, with 28.75%,
and was not planning any takeover offer.
        After the sale of Home Credit units last year, PPF
announced plans to sell its Home Credit unit in India last week
and earlier this year said it would sell its business in
Vietnam.
    Smejc reiterated PPF was also working on selling its small
Home Credit business in China, a lengthy process due to
regulatory issues. 
    It was sticking to a long-term plan to divest its Home
Credit business in Kazakhstan but was in no rush, he said.
    Smejc said PPF may also sell its nearly 30% stake in Czech
bank MONETA  MONET.PR  if it gets a strong offer, but if not, it
was prepared to keep it.
($1 = 0.9274 euros)

 (Reporting by Jason Hovet and Jan Lopatka; Editing by Susan
Fenton)
 ((jason.hovet@thomsonreuters.com;))